First Property
Okay, so I have read a lot of posts and just want to make sure everything is good to go. I am using a realtor to find properties in the Baltimore area since I am not from there. She found a REO for 15k. The comps are anywhere from 75-105k, and a contractor has bid the job for 25k. This seems to make it feasible to make a lot of money. I am using a hard money lender that is including all the closing costs, purchase/rehab funding for 15%.
My question is where do I go from here. The lender needs a Purchase agreement, so does the contractor for the actual written estimate, but the lender needs the written estimate before I can be approved. When signing the purchase agreement, I have to shell out a nonrefundable deposit of $1000. I don't want to pay this money and then for some reason not be approved. At the same time, I can't get approved without it first.
Where do I go now? Also, when do I need to get it inspected, get insurance?
How do I make sure that I can sell the property with the seasoning issue? If my realtor can't sell it and I resort to owner financing, do I still pay her for attempting to sell it? Will it be able to be insured?
I know that these are all basic questions, but I am VERY nervous about this first deal. Everyone says to just take the plunge and do it, but not being able to sleep at night is getting old!!!!! :-?
First can you get approved for a regular mortgage? If yes, then I have never seen a HML not be approved.
As far as getting the house inspected, do you mean a home inspection? I think that would be a waste of money. I would never tell someone to get a home inspection if the house needed to have many repairs.
The contracors must have went through the house to give you a bid??????????
You will need homeowner's insurance before you close on the deal.
I don't thinkanyone could tell if, when, or who, about selling the house. If someone can let me know.
If your realtor fulfills the contract you make with her, then yes you would have to pay her.
Hope this helps
Lori
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